Circle Confirms Ability to Recover $3.3 Billion, USDC Price Approaches $1
In its latest update, Circle has confirmed it can recover the $3.3 billion trapped at Silicon Valley Bank over the weekend, resulting in USDC's price inching back toward the $1 mark.
Circle Confirms Ability to Recover $3.3 Billion, USDC Price Approaches $1
Circle has confirmed it can recover the $3.3 billion trapped at Silicon Valley Bank, and USDC's price is nearing the $1 level. The official announcement was shared by CEO Jeremy Allaire on his Twitter account.
Circle’s USDC operations will open for business on Monday morning, including with new automated settlement via our new partnership with Cross River Bank. https://t.co/ybkSEedzrC
— Jeremy Allaire - jda.eth / jdallaire.sol (@jerallaire) March 13, 2023
"USDC deposit and withdrawal services will resume on Monday morning through our new partner, Cross River Bank," Allaire tweeted.
Circle stated that the $3.3 billion held at Silicon Valley Bank (about 8% of the total reserves backing USDC) will be accessible once the bank in the U.S. resumes operations. Additionally, Circle assured that no cash reserves were held at Signature Bank, which was recently shut down by authorities due to similar risks.
Read More: "Crypto-Friendly" Signature Bank Ordered to Close by U.S. Authorities
As mentioned above, Circle will announce Cross River Bank as the new banking partner for USDC deposits and withdrawals, effective March 13, 2023. CEO Jeremy Allaire commented:
"Trust, safety, and the 1:1 backing of USDC are core principles for Circle, even as we navigate crises affecting the crypto market. We appreciate the steps taken by the U.S. government and financial authorities to mitigate risks in the banking sector. We remain committed to a fully backed crypto platform and helping the market remain resilient to the effects and risks of fractional reserve banking."
On March 11, the crypto community was shaken by the news that USDC had $3.3 billion in cash trapped at Silicon Valley Bank, causing USDC to lose its peg and drop to as low as $0.88.
Read More: USDC Depegs Significantly Due to Silicon Valley Bank Crisis
However, with Circle's commitments to cover liquidity shortfalls and the announcement of recovering the $3.3 billion from Silicon Valley Bank, the USDC price has quickly returned to the $1 mark.
USDC Price Movement in the Last 24 Hours
Screenshot from CoinGecko at 11:00 AM on March 13, 2023
